1. What is GST in Alberta?

In Alberta, the Goods and Services Tax (GST) is a 5% federal tax applied to most goods and services. Alberta does not have a provincial sales tax (PST), so only GST applies to purchases.

2. How Does the Calculator Work?

The calculator uses the GST formula:

Where:

• \( Subtotal \) — Amount before taxes in Canadian dollars
• \( 0.05 \) — GST rate for Alberta (5%)

Explanation: The calculation is straightforward - multiply the subtotal by 5% (0.05) to get the GST amount.

3. Importance of GST Calculation

Details: Accurate GST calculation is important for businesses to properly charge taxes, for consumers to understand their total costs, and for accounting purposes.

4. Using the Calculator

Tips: Enter the subtotal amount in Canadian dollars (without taxes). The calculator will compute the 5% GST and the total amount including GST.

5. Frequently Asked Questions (FAQ)

Q1: Is GST the only tax in Alberta?
A: Yes, Alberta only charges the federal 5% GST. There is no provincial sales tax (PST) in Alberta.

Q2: Are there items exempt from GST in Alberta?
A: Yes, certain items like basic groceries, prescription drugs, and medical devices are GST exempt.

Q3: How often does GST change?
A: GST rates are set by the federal government and have remained at 5% since 2008.

Q4: Do businesses pay GST?
A: Businesses collect GST from customers but can claim input tax credits for GST they pay on business expenses.

Q5: What's the difference between GST and HST?
A: HST (Harmonized Sales Tax) combines GST and PST into a single tax, used in some provinces but not Alberta.